Paying sterling by Paypal

Brendan Burgess

Founder
Messages
45,739
I was paying a subscription of £32 and I was directed to Paypal who asked me to confirm £32 which I did.

I assumed that my Revolut card would be charged with £32 and they would change it to euro.

I was not given an option to pay in local currency or my own currency.

But it came up as €40.05 on Revolut and when I look at my PayPal statement it shows that it did the exchange and charged Revolut in euro

1642017343866.png

It would have been €38.29 by Revolut.

Brendan
 

Brendan Burgess

Founder
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45,739
I am fairly sure I did not get that option.

I am alert to this and would have chosen to pay £32 as part of the reason for having a Revolut card is the good exchange rates.

Brendan
 

ClubMan

Registered User
Messages
44,540
The option isn't presented automatically. I'm pretty sure that the PayPal exchange rate is always a link that allows you to switch off the automatic conversion. But it's very subtle. Probably deliberately.

Edit: ok, maybe it depends on the funding option as to whether or not you get a link to that option?
 

Carnmore

Registered User
Messages
286
There is no way around this other than opening a second PayPal account with a UK address.

This is against PayPal's rules but two different customer service agents advised to do this.

I have had no issues since provided I make sure to use the relevant account.
 

ClubMan

Registered User
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44,540
There is no way around this other than opening a second PayPal account with a UK address.
That doesn't seem correct. I just did a test send of GBP£1 to a contact and if I selected my VISA credit card as the funding source then I got a link allowing me to switch off PayPal conversion and leave it to the card. If the funding source was my current account then I did not get this option.
 

Carnmore

Registered User
Messages
286
That doesn't seem correct. I just did a test send of GBP£1 to a contact and if I selected my VISA credit card as the funding source then I got a link allowing me to switch off PayPal conversion and leave it to the card. If the funding source was my current account then I did not get this option.
I tried everything and PayPal informed me as stated
 

ClubMan

Registered User
Messages
44,540
Screenshot_20220112-211558~2.png


The "change" link allows me to disable PayPal conversion and let the card do it.
 

Carnmore

Registered User
Messages
286
The "change" link allows me to disable PayPal conversion and let the card do it.
There's no option on my account to do this.

Even if I choose the funding source as Revolut it still uses PayPal's exchange rate.

By selecting your credit card, is the exchange rate better? £1 GBP would cost €1.25 using PayPal but separately in the Revolut app it would cost €1.19
 

ClubMan

Registered User
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44,540
By selecting your credit card, is the exchange rate better? £1 GBP would cost €1.25 using PayPal but separately in the Revolut app it would cost €1.19
No idea. It's a PTSB VISA credit card so maybe it's as poor value as PayPal? I don't tend to make foreign currency payments by PayPal big enough to worry about the exchange rate to be honest. :)
 

ClubMan

Registered User
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44,540
I registered my PTSB debit card with my PayPal account and tried the same test and don't get the option there to prevent PayPal from doing the currency conversion so maybe it's something to do with certain cards like Revolut? Maybe PayPal doesn't see them as credit cards that can do currency conversion?
 

MrEarl

Registered User
Messages
2,344
Is it possible PayPal are taking a different approach with Credit Cards, to Debit Cards ?

If so, why? Have they negotiated different terms for processing Debit Card payments, which includes them getting the FX business, rather than the card provider possibly getting it ? Is there something in their T&Cs about this, perhaps?

When I use my Credit Card, I always have the option to choose the currency I pay in, when buying goods in GBP.
 
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ClubMan

Registered User
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44,540
Is it possible PayPal are taking a different approach with Credit Cards, to Debit Cards ?
I think that is the case and the explanation is buried somewhere in the terms and conditions/user agreement that we all agree to but don't read.
 

Carnmore

Registered User
Messages
286
Regardless, I've found PayPal and credit card providers exchange rates to be similarly uncompetitive.

I fund my UK PayPal Account with GBP already exchanged with Revolut to avail of their interbank rate.
 

ClubMan

Registered User
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44,540
Yes, but the key issue of this thread is whether and when the option is available to disable PayPal's automatic currency conversion and leave it to the payment card to do this. That's specifically what the original poster asked about.
 

Carnmore

Registered User
Messages
286
Yes, but the key issue of this thread is whether and when the option is available to disable PayPal's automatic currency conversion and leave it to the payment card to do this. That's specifically what the original poster asked about.
I realise that. My point is an addendum hence stating "regardless".
 

MrEarl

Registered User
Messages
2,344
Hello,

Assuming you have the AIB Credit Card with cash back...

If you opt to use your Credit Card, in order to select GBP as the currency that PayPal will transact in, does the transaction then qualify for cashback, on the AIB Credit Card?

Ultimately, what I'm wondering is, is there a small benefit to accepting that the Credit Card company gets the FX business, if you get the casback on the transaction?
 

ClubMan

Registered User
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44,540
Why do you think that the credit card would treat the PayPal charge any differently to any other transaction done "directly" using the card?
 

MrEarl

Registered User
Messages
2,344
I'm not sure, as I don't have the AIB card (yet, it's on my list of things to get)... but Card providers often have certain transactions excluded for cashback, and given PayPal aren't actually a retailer, I thought it might be an issue.
 
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